Amazon

Wednesday, June 17, 2015

Arkansas Man Sentenced to Prison for Federal Tax Fraud

A Springdale, Arkansas, man was sentenced today in the U.S.
District Court in Fayetteville, Arkansas, for multiple tax crimes, announced
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice
Department’s Tax Division and U.S. Attorney Conner Eldridge of the Western
District of Arkansas.

Doyle Smith, 56, was sentenced to serve 48 months in prison
to be followed by five years of supervised release and ordered to pay a $5000
fine.On Feb. 11, following a three-day
trial before U.S. District Judge Timothy L. Brooks of the Western District of
Arkansas, a jury found Smith guilty of four counts of filing a false tax
return, one count of corruptly endeavoring to obstruct and impede the
administration of the internal revenue laws and one count of presenting a
fictitious financial obligation.

According to evidence introduced at trial, in 2008 and 2009,
Smith submitted four false individual federal tax returns for tax years 2005
through 2008, which falsely reported a total of more than $1.4 million in fictitious
federal tax withholdings.Based on these
fictitious withholding amounts, Smith claimed a total of $1,021,457 in income
tax refunds that he was not entitled to receive.Smith also submitted false claims and
correspondence to both the Internal Revenue Service (IRS) and third-parties in
an attempt to cause the IRS and U.S. Treasury to pay his debts to third parties
and to obstruct the IRS’ tax administration efforts.For example, in January 2010, Smith mailed to
the Department of Arkansas Finance and Administration a fictitious financial
instrument titled “U.S. Treasury Trust Account Money Order.”This fictitious document purportedly
obligated U.S. Treasury funds in the amount of $129,439 to pay for outstanding
sales taxes that Smith owed to the state of Arkansas.

“Individuals like Doyle Smith, who commit criminal tax
offenses and attempt to use the U.S. Treasury as their personal slush fund,
will be identified, investigated, prosecuted and incarcerated,” said Acting
Assistant Attorney General Ciraolo.“The
message from today’s sentencing is clear: those who attempt to cheat the system
will pay a heavy price for their criminal conduct.”

“Smith, in his fraudulent scheme, attempted to steal
taxpayer money from the U.S. Treasury for his own benefit,” said U.S. Attorney
Eldridge.“Those who steal from the U.S.
Treasury steal directly out of the pockets of the hard-working people of the
Western District of Arkansas.With today’s
sentence, a strong message has been sent that our office and our law enforcement
partners will relentlessly pursue fraud wherever we find it.”

“Today’s sentencing is a reminder of the penalties
individuals face when submitting false claims for federal income tax refunds,”
stated Special Agent in Charge Christopher A. Henry of the IRS-Criminal
Investigation (CI).“IRS-Criminal
Investigation will continue their aggressive pursuit of those who use
fraudulent methods in an attempt to corrupt our nation’s tax system, and our
unwavering commitment to protecting the interests of law-abiding taxpayers.”

“It is the Treasury Inspector General for Tax
Administration’s mission to protect the integrity of the Internal Revenue
Service and promote the fair administration of our federal tax system,” said
Special Agent in Charge Ruben Florez of the Treasury Inspector General for Tax
Administration’s (TIGTA’s) Mid-States Field Division.“TIGTA and its law-enforcement partners will
vigorously investigate individuals that attempt to corruptly interfere with the
administration of the internal revenue laws through fraudulent means, and will
do everything within its power to ensure that those involved will be prosecuted
to the fullest extent of the law.Today’s sentencing demonstrates that our justice system will not
tolerate these types of actions.”

Acting Assistant Attorney General Ciraolo and U.S. Attorney
Eldridge commended the special agents of IRS-CI and TIGTA, who investigated the
case, as well as Trial Attorneys Robert Kemins and David Zisserson of the Tax
Division, who prosecuted the case.